Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section has effect in working out the group's * allocable cost amount for a partner in the partnership, if the partner ceases to be a * subsidiary member of the group at the leaving time.
(2) Section 711 - 35 operates as if:
(a) a deduction to which the partnership becomes entitled (the partnership deduction ) were a deduction to which the partner becomes entitled, to the extent of the partner's individual share of the partnership deduction; and
(b) the deduction to which the partner becomes entitled were of the same kind as the partnership deduction.
Note: These kinds of deductions include acquired deductions and owned deductions (within the meaning of section 711 - 35).
(3) Section 711 - 40 operates as if a liability owed by * members of the group to the partnership at the leaving time were a liability owed by members of the group to the partner at that time, to the extent of the partner's individual share of the liability.
(4) If:
(a) in accordance with the * accounting principles that the partnership would use if it were to prepare its financial statements just before the leaving time (disregarding subsection 701 - 1(1) (the single entity rule)), a thing (the partnership liability ) is a liability of the partnership just before the leaving time; and
(b) for that reason, the partnership liability is not an accounting liability of the partner just before the leaving time for the purposes of section 711 - 45;
then section 711 - 45 operates as if the partnership liability were an accounting liability of the partner just before the leaving time, to the extent of the partner's individual share of the partnership liability.